The City Council Tuesday will vote on whether to require developers of new hotel properties to replace any permanent housing lost in the process.
The proposed law, called the Responsible Hotel Ordinance, was co-authored by the office of Council President Paul Krekorian, the Unite Here Local 11 hospitality workers union and representatives of the hotel industry. It’s intended to replace a ballot initiative sponsored by the labor union, which was set to appear on the March 2024 ballot.
Officials previously stated the ballot proposition would be withdrawn if the ordinance is enacted.
The proposed ordinance would also introduce provisions intended to bolster public oversight over short-term rentals, hotels and other properties, and increase the supply of interim housing available to the city.
Hotel developments would be required to obtain a permit from the Department of City Planning. In addition, hotels, short-term rentals and motel owners would be required to obtain a police permit for operation.
The process would also involve public review of a proposed development’s impact on the existing housing supply and require developers to replace any housing that would be demolished or otherwise lost in a neighborhood.
Additionally, owners and operators would be screened for prior criminal activity or any history of creating a public nuisance, such a as so-called “party houses” or other criminal activities.
As part of the ordinance, the city would create a voluntary registry in which participating hotels would notify the city of vacant rooms that can be made available for interim housing.
If the draft ordinance is approved, the city attorney is expected to prepare and present a finalized ordinance to the council later this week, according to city officials.
The city’s Planning Commission approved the proposed law on Nov. 16 with some modifications.
The council’s Rules, Elections and Intergovernmental Relations Committee convened in a special meeting on Nov. 21 to discuss the item as well. The three-member committee voted 2-0, with Councilman Marqueece Harris-Dawson absent during the vote, to move the item forward to full council.
“(We) will try to develop a Responsible Hotel Ordinance that works for all stakeholders,” Krekorian said during the rules committee meeting. “You have my commitment that we’re going to continue to work on this event if this passes through council and we’re finished — we will continue to try to make it better to serve the interests of all involved.”
He noted there had been a few changes in the proposed ordinance, mostly technical, compared to what was originally introduced, such as defining “high,” “medium” and “low” occupancy lodging to distinguish those categories for fee purposes; and removing an on-site visit requirement for most applications.
The councilman also said that, under this updated version of the ordinance, it would go into effect July 1, 2024.
Nayeli Gomez, a worker for Courtyard Residence Inn for over nine years and a member of Unite Here Local 11, said she helped the union collect more than 120,000 signature for the ballot initiative.
“We understand firsthand that our city is experiencing an unprecedented housing crisis, and working downtown has become a challenge more and more,” Gomez told committee members during public comment.
She added, “The standard of living has gone way up and in the last three years I’ve had my rent increased twice.”
According to Gomez, the proposed ordinance “meets the moment” and it will protect the housing that she and her fellow union members “desperately need.”
While the proposed ordinance is backed by Unite Here Local 11 and members of the hotel industry, there’s growing opposition from motel owners, and from homeowners who use their homes for short-term rentals.
Many have expressed concern with the permit process, which they say will create a burden on them.
Vanessa Johnson, an AirBnB host, said short-term rentals should not be included in the ordinance.
“We are not hotels. We don’t open to the public. I mean this is unfair to us,” Johnson said. “Most of us, as senior citizens, as an extra burden and costs of getting another permit just puts us out of business altogether. We are doing this to hold on to our homes and to keep our house over our head.”